Shein and Temu Sales Plummet Due to Donald Trump’s Measures

A New Era of U.S. Trade Policy Hits Chinese E-Commerce Giants

The resurgence of Donald Trump’s trade-centric policies has sent shockwaves through the global e-commerce landscape.

In particular, Chinese e-commerce powerhouses Shein and Temu are facing a dramatic downturn in U.S. sales due to sweeping measures imposed by Trump’s administration.

The political shift has ignited regulatory crackdowns, tightened import laws, and rising tariffs, fundamentally reshaping how these fast-fashion and low-cost platforms operate within the American market.

Revocation of de minimis Loophole: A Crushing Blow

One of the most significant moves has been the targeting of the “de minimis” rule, a regulation that previously allowed shipments under $800 to enter the United States without paying import duties.

Shein and Temu heavily relied on this provision, importing millions of low-cost packages daily without tariffs or customs delays.

Trump’s measures have tightened or eliminated access to this loophole, thereby subjecting most of Shein and Temu’s shipments to full customs duties and inspections.

This shift has not only increased delivery times but also elevated product prices, eroding the ultra-competitive edge these platforms once held.

Tariff Hikes on Chinese Goods

In a revival of his original 2018 trade war stance, Donald Trump has also escalated tariffs on Chinese-manufactured goods, directly impacting product categories such as clothing, electronics, and household items—all core to Shein and Temu’s offerings.

As a result, the cost of doing business has skyrocketed for both companies.

Consumers, once attracted by deep discounts and fast delivery, are now experiencing higher prices, delayed shipping, and reduced variety.

This has led to a measurable decline in repeat purchases and overall customer satisfaction, triggering a major sales slump across both platforms.

Intensified Scrutiny and Regulatory Oversight

Beyond tariffs and tax policy, Trump’s administration has revived national security and data privacy concerns around Chinese tech companies.

Shein and Temu, both known for collecting vast amounts of user data, are now under intense scrutiny from the Federal Trade Commission (FTC) and U.S. Customs and Border Protection (CBP).

Several bipartisan lawmakers have also introduced legislation aimed at banning or restricting Chinese e-commerce platforms suspected of violating U.S. privacy laws or engaging in unfair trade practices.

This has resulted in ongoing investigations, paused shipments, and border holds, further constraining operations and choking revenue streams.

Consumer Trust Erodes Amid Political Tensions

The deteriorating political relationship between the U.S. and China has also led to a shift in consumer sentiment. Many American consumers are now wary of buying from Chinese platforms, fearing lower product safety standards, counterfeit goods, or contributing to geopolitical tensions.

The once-popular image of Shein as a trendy, affordable fashion brand is now tarnished with negative press, social media backlash, and growing distrust.

Likewise, Temu’s “shop like a billionaire” motto has lost credibility in the face of rising complaints, poor reviews, and regulatory scrutiny.

Logistics Challenges and Supply Chain Disruptions

As a result of new import restrictions and tightened inspections, Shein and Temu are experiencing significant supply chain bottlenecks.

Packages that once arrived in the U.S. within 7–10 days are now taking several weeks or even months, resulting in cancelled orders and refund requests.

Moreover, Trump’s push for reshoring U.S. manufacturing and reducing reliance on Chinese imports has led to a de-prioritization of Chinese logistics partners at major ports and customs checkpoints.

This policy has crippled last-mile delivery timelines and increased freight costs, contributing further to the decline in platform performance.

Shein’s IPO Dreams Under Threat

Shein’s long-anticipated U.S. Initial Public Offering (IPO) is now in jeopardy due to these developments. The company’s valuation has dropped, and investors are growing cautious in light of regulatory uncertainties and declining market share.

The IPO process has also been bogged down by compliance investigations into forced labor allegations, data privacy concerns, and environmental violations—issues that have gained renewed political traction under Trump’s leadership.

Temu’s Aggressive Expansion Faces Regulatory Walls

Temu, a subsidiary of Pinduoduo, entered the U.S. market with a hyper-aggressive growth strategy, backed by massive subsidies and rock-bottom pricing.

However, this model is now proving unsustainable as rising tariffs and inspection delays eliminate the cost advantages Temu once enjoyed.

The platform has also drawn criticism for its “race to the bottom” pricing model, which many experts believe is a form of predatory pricing intended to wipe out American small businesses.

Trump’s administration has responded by investigating Temu for anti-competitive practices, leading to possible sanctions and further erosion of its U.S. foothold.

U.S. Competitors Capitalize on Chinese Platforms’ Decline

As Shein and Temu falter, American e-commerce platforms like Amazon, Walmart, and Target are seizing the opportunity to reclaim lost ground. These retailers are actively marketing “Buy American” campaigns, promoting domestic brands and faster, tariff-free shipping.

This trend is encouraging U.S. shoppers to return to homegrown platforms, particularly those that guarantee quality assurance, quicker returns, and better customer service—areas where Shein and Temu are increasingly lagging behind.

The Road Ahead: Will Shein and Temu Survive?

The current landscape poses a critical juncture for both Shein and Temu. In response, these companies are exploring alternative markets outside the U.S., localized production facilities, and more transparent sourcing policies.

However, the road ahead remains rocky as Trump’s second-term agenda continues to focus on economic nationalism, trade protectionism, and stricter foreign commerce oversight.

If Shein and Temu cannot swiftly adapt to the new regulatory environment, their dominance in the global e-commerce market may significantly diminish.

Investors, consumers, and regulators alike are now watching closely to see if these fast-fashion titans can weather the storm or collapse under the weight of political pressure and legal constraints.